Reykjavik - Iceland was set to continue talks with Russia over a loan to ease its financial situation, the Icelandic central bank said in a statement Thursday.

During the two-day talks in Moscow that ended Wednesday, delegates from the Icelandic Finance Ministry and central bank met with, among others, Russian Deputy Finance Minister Dimitri Pankin.

Pankin said in the joint statement there was need for "further exploration of the issues before we can reach a final decision."

Iceland earlier has mentioned the sum of 4 billion euros (5.4 billion dollars).

The Icelandic central bank on Wednesday lowered key interest rates from 15.5 to 12 per cent.

Brussels - Russia should be allowed to join the European Union in the coming years, Italian Prime Minister Silvio Berlusconi said Wednesday.

"I consider Russia to be a Western nation. So my project is that the Russian Federation should become a member of the EU in the coming years," Berlusconi told Italian reporters on the sidelines of an EU summit in Brussels.

Berlusconi's comments on Russia's EU aspirations were not new, but they nevertheless raised eyebrows in Brussels.

Geneva - The first talks between Georgia and Russia since their five-day war in August have been suspended without resolution at a United Nations meeting in Geneva Wednesday, a UN representative said.

Representatives from the United States, European Union and the Organization for Security and Cooperation in Europe (OSCE) were taking part in the talks.

Moscow  - A Russian military court opened the trial Wednesday

The Hague - The International Court of Justice (ICJ) in The Hague is due to rule Wednesday on Georgia's claim against Russia concerning the alleged violation of its territorial integrity in August.

Georgia says Russia violated international law by entering the province of South Ossetia on August 7.

It also claims Russia previously caused unrest in South Ossetia, as well as in the breakaway province of Abkhazia.

Georgia, which filed its case against Russia in the ICJ on August 15, also claims Russia committed genocide and ethnic cleansing in South Ossetia.

Russia has rejected all allegations and says it entered Georgia's South Ossetia region to protect the civilian population from violence committed by the Georgian Army.

Geneva - Leaders from Russia, Georgia, the US, the EU and the Organization for Security and Cooperation in Europe (OSCE) are to meet in Geneva on Wednesday to discuss the situation in Georgia.

The closed meeting is also to include leaders of the breakaway Georgian regions of South Ossetia and Abkhazia in an effort to find a long-term solution for stability in the region.

A five-day war occurred in August when Russia invaded South Ossetia in response to Georgian efforts to impose its rule there.

The precise agenda for the meeting is not yet clear, although Russia is expected to push for an arms embargo on Georgia, which it blames for the conflict.